Saudi Arabia to become ‘one of world’s largest’ construction hubs
07 September 2023
Saudi Arabia is set to become one of the world’s largest construction hubs thanks to more than US$1.25 trillion of infrastructure and real estate projects in the pipeline, according to real estate consultancy firm Knight Frank.
The firm’s annual Saudi Giga Projects report noted the combined value of commissioned infrastructure and real estate developments has already reached US$250 billion, with the remaining figure made up of projects yet to be fully approved or given a construction start date.
The report claims that the number of planned residential units has surged by 30% to 660,000 units over the past year and highlighted projects such as the US$500 billion NEOM metropolis, Turogina, the location for the 2030 Asian Games, and Senda Island, a prominent tourist destination.
Riyadh, the capital of Saudi Arabia, is said to contribute 18% to the total real estate and development projects currently underway in the Kingdom. The plan includes the construction of over 241,000 homes by 2030, in addition to around 3.6 million sq. meters of office space. “Riyadh is a hive of construction activity as the city races to keep pace with demand in all real estate segments, while also balancing its vision to emerge as a key global financial and commercial capital,” said Faisal Durrani, partner and head of research for the Middle East and North Africa at Knight Frank.
Riyadh aims to secure hosting rights for the 2030 World Expo, a prospect that could accelerate the transformation pace of the city.